Schedule 8 | Tonnage tax

From legislation.gov.uk

(1)Schedule 22 to FA 2000 (tonnage tax) is amended as follows.

(1)In paragraph 16 (qualifying companies and groups), in sub-paragraph (1)(b), after “operates” insert “or manages”.

(2)After paragraph 18 insert—

18AMeaning of managing a qualifying ship

(a)the ship is a qualifying ship operated by a tonnage tax company (“the operator”),

(b)the company carries on activities in relation to the ship that would be tonnage tax activities of the operator if the operator carried them on, and

(c)those activities as carried on by the company represent a significant contribution to the operation of the ship.

(1)Paragraph 4 (tonnage tax profits: method of calculation) is amended as follows.

(2)In sub-paragraph (1), after “operated” insert “or managed”.

(3)In sub-paragraph (2), for Step One substitute—

Table shown as text

Net tonnage Daily Profit Operated ship Managed ship For each 100 tons up to 1,000 tons £0.60 £0.12 For each 100 tons between 1,000 and 10,000 tons £0.45 £0.09 For each 100 tons between 10,000 and 25,000 tons £0.30 £0.06 For each 100 tons above 25,000 tons £0.15 £0.03

(4)In paragraph 46 (core qualifying activities)—

(a)in sub-paragraph (1)—

(i)in paragraph (a), after “operating” insert “or managing”, and

(ii)in paragraph (b), after “operating” insert “or managing”, and

(b)after sub-paragraph (2) insert—

(3)A company’s activities in managing qualifying ships means its participation in the activities mentioned in that paragraph by virtue of which the ship is a qualifying ship.

(5)In paragraph 17 (effect of temporarily ceasing to operate qualifying ships)—

(a)in sub-paragraph (1) after “operate”, in both places it occurs, insert “or manage”,

(b)in sub-paragraph (2), in paragraph (a), after “operating” insert “or managing”,

(c)in that sub-paragraph, in the words after paragraph (b)—

(i)after “operate” insert “or manage”,

(ii)after “operated” insert “or managed”, and

(d)in sub-paragraph (4)—

(i)in paragraph (a), after “operating” insert “or managing”, and

(ii)in paragraph (b), after “operates” insert “or manages”.

(6)In paragraph 23 (the training requirement), after sub-paragraph (2) insert—

(3)The condition mentioned in sub-paragraph (1) does not apply to—

(a)a company that does not operate any qualifying ships, or

(b)a group that does not have any members that operate one or more qualifying ships.

(1)In paragraph 37 (75% charter limit)—

(a)in sub-paragraph (1), in the words before paragraph (a), after “of” insert “a relevant company or group”, and

(b)after sub-paragraph (5) insert—

(6)For the purposes of sub-paragraph (1)—

(a)a company is “relevant” if it operates one or more qualifying ships, and

(b)a group is “relevant” if it has one or more members that operate one or more qualifying ships.

(2)In paragraph 49 (distributions of oversea shipping companies), in sub-paragraph (2), in paragraph (c), after “that” insert “, where the overseas company operates qualifying ships,”.

(8)The amendments made by this Schedule have effect in relation to tonnage tax elections made on or after 1 April 2024.